An unprecedented 60% of Peruvian executives expect to actively pursue M&A (Mergers and Acquisitions) in the next 12 months, targeting deals under US$250 million, EY Peru affirmed on Tuesday.
In this sense, the EY Peru Lead Partner noted "pipelines are relatively healthy, and executives are cautiously optimistic
about deal completions."
Overcoming Coastal El Niño
Peru seems to be overcoming the devastating Coastal El Niño floods
and landslides that wreaked havoc in northern regions earlier this year.
According to the Barometer, Peruvian respondents remain "overwhelmingly upbeat about the local economy," with a staggering 95% seeing it as stable to improving thanks to strong macroeconomic fundamentals.
M&A as alternative to organic growth
Amidst the global organic growth preference, Peruvian dealmakers have added inorganic approaches to growth (like M&A and joint ventures) to their boosting and value-increasing strategies.
In a release
, Oliveros explains one of the main reasons behind this behavior is the need to venture into new geographic markets.
In this sense, Peruvian executives' main investment destinations
are Peru, the United States, Brazil, India and China.
To conclude, the EY Peru partner anticipated further "promising" outlooks, as "the Peruvian Government carries on implementing pro-business policies" that prompt businesses to cross-border dealmaking to gain access to new markets.
EY's Global Capital Confidence Barometer reveals the outlooks of top executives from a range of sectors regarding growth strategies, M&A, access to capital and the macroeconomic situation.
The 16th edition of the biannual survey was conducted by Euromoney Institutional Investor Thought Leadership in March-April 2017.